sebi:BM/AO-135/2013
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Facts / Headnote
Violation established; penalty of Rs 5,00,000 imposed under Section 15A(b) of SEBI Act, 1992
Provisions invoked
- s. 15A
- s. 15
- s. 12
- s. 15J
- s. 41
- s. 12(3)
- s. 10
- s. 152A
- s. 11
Regulations
- Reg. 7
- Reg. 7(1)
- Reg. 13
- Reg. 13(3)
- Reg. 13(5)
- Reg. 7(2)
- Reg. 58
Parties
- Sanjay Bajranglal Sharma
Holding
The Noticee violated Regulation 7(1) read with 7(2) of SAST Regulations and Regulation 13(3) read with 13(5) of PIT Regulations by failing to disclose acquisition crossing 5% and changes exceeding 2% in MTZ Polyfilms Limited, and was liable to a monetary penalty of Rs 5,00,000 under Section 15A(b) of SEBI Act.
Full text
_____________________________________________________________________________________ Sanjay Bajranglal Sharma in the matter of MTZ Polyfilms Limited Page 2 of 18 14.09.2010. It was observed that due to such transfers there was change in the holding of the Noticee by more than 5% of the paid up capital of MTZ Polyfilms Limited and such changes required disclosures to the exchange under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997(hereinafter referred to as SAST Regulations) and SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as PIT Regulations). It was alleged that Noticee did not make the disclosures to the exchange under Regulation 7(1) read with 7(2) of SAST Regulations and Regulation 13(3) read with 13(5) of PIT Regulations.
_____________________________________________________________________________________ Sanjay Bajranglal Sharma in the matter of MTZ Polyfilms Limited Page 3 of 18 the said SCN. The said SCN was delivered and acknowledged by the Noticee. Noticee vide letter dated May 22, 2011 submitted a copy of an agreement dated July 9, 2009 entered into between Noticee, MTZ Polyfilms Limited and dated September 17, 2009 entered into between Noticee, MTZ Polyfilms Limited and MTZ Industries Limited and made the following submissions: a. That the Notice is drafted due to certain off‐market transactions of MTZ Polyfilms Limited to and fro from Demat account of MTZ Industries Limited and Sanjay Sharma. At the outset let me deny all the allegations about contravening provisions of SEBI Account, doing that let me narrate the facts of the case as follows: i. That the promoter of both MTZ Polyfilms Limited and MTZ Industries Ltd. are known to me for last many years and my company have been serving them as air ticketing agents. The promoters had specific requirements of funds for which they approached me. ii. I arranged certain sum personally and stood guarantor for certain sum advanced to promoters, against which some shares were transferred to my demat account on various dates. The details are given as follows: Execution date Quantity Transferor Transferee 10/
_____________________________________________________________________________________ Sanjay Bajranglal Sharma in the matter of MTZ Polyfilms Limited Page 4 of 18 necessary disclosure under Regulation 7(1) read with 7(2) of SAST Regulations.
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Source: SecMarx — sebi:BM/AO-135/2013. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.